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OPINION (COM(2024)0461 – C100009/2024 – 2024/0071(COD))

On the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Arab Republic of Egypt

AFET-AD-765291

Committee on Foreign Affairs · Rapporteur: Tineke Strik

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The Committee on Foreign Affairs opinion on macro-financial assistance to Egypt insists that disbursements be tied to concrete improvements in human rights, democracy, and the rule of law, and calls for stronger parliamentary scrutiny and transparency. It proposes amendments to the regulation to include such conditions in the Memorandum of Understanding and to require regular reporting to Parliament.

Committee position. The Committee on Foreign Affairs proposes amendments to the regulation to make human rights, democracy, and rule of law improvements a precondition for disbursement and to strengthen parliamentary oversight.

Key points

  1. Egypt must take concrete and credible steps towards respecting democratic mechanisms, the rule of law, and make a quantitative and substantial improvement in human rights since June 2024 as a precondition for assistance.
  2. The Commission and the European External Action Service must monitor the precondition transparently, with input from civil society and UN organisations, and report regularly in writing to Parliament.
  3. The Memorandum of Understanding must include democracy, rule of law, and human rights conditions, and the release of each instalment is subject to their satisfactory implementation.
  4. The Commission must inform Parliament and Council annually on developments and on respect for democratic mechanisms, providing relevant documents including third-party assessments.
  5. The Union must ensure effective and independent control and audit mechanisms to prevent misappropriation of funds.
  6. The Commission's annual report must outline the concrete steps Egypt has taken towards democratic mechanisms, rule of law, and human rights.
  7. The opinion stresses that EU external action must uphold human rights, democracy, and the rule of law, and that these principles should be core to the assistance.

Who is affected

  • Egypt: must meet human rights and democratic conditions to receive macro-financial assistance.
  • European Commission and European External Action Service: responsible for monitoring and reporting on conditions.
  • European Parliament and Council: receive regular reports on progress.

Figures and deadlines

  • EUR 1 billion macro-financial assistance package linked to the Memorandum of Understanding signed in June 2024.
  • EUR 90 million threshold for examination procedure.

Legal basis: Article 212 TFEU